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Finland VAT rise to 25.5% 1 Sept 2024

Government confirms 1.5% VAT rise to 25.5% 1 Sept 2024; further reduced rate rises Jan 2025

The Finnish government has confirmed that the proposed VAT increase from 24% to 25.5% will go ahead on 1 September 2024, but is subject to Parliamentary approval.

This will make its standard rate second only to Hungary in the European Union. The Insurance Premium Tax rate would also go to the same rate. The VAT rate for sweets and chocolate will be increased from the current reduced rate of 14 percent to 25.5 percent according to the new general VAT rate.

The rise was first confirmed on 16 April with the Finance Minister reportedly looking for a quicker implementation to avoid the country crossing the Euro currency membership rule of government deficit not exceeding 3%. The VAT rise comes with other savings to raise €3 billion.

Further reduced rate rises 1 January 2025

The 14% and 10% reduced VAT rates will remain unchanged, the Finish reclassifications announced last year will likely still go ahead as follows:

From 10% to 14%

  • Books (not journals or magazines)
  • Hotel services
  • Public transport
  • Pharmaceuticals from 10%
  • Entrance to cultural & sporting events
  • Film screenings
  • Royalties for television and public radio activities

From current 24% to 14%

  • Tampons
  • Nappies

Public debt relative to GDP has more than doubled since 2008. In 2024–2026, economic growth will remain sluggish for cyclical reasons, and even the longer-term outlook for growth will not provide relief for fiscal problems.

The neighbouring countries of Norway, Sweden and Denmark, with similar advanced economies, all have VAT rates of 25%. Read more in our Finland VAT guide.

Other tax rises in 2025 are likely to be on high-earners and pensioners.

Jan 2013 – VAT rise to 24% Euro crisis cripples government finances

Finland’s VAT rate last rose in 2013. It joined most of the rest of Europe with a rise in its standard VAT rate to help manage the long-term effects of the 2007/08 financial crisis and subsequent Euro-currency crisis.

The primary Value Added Tax rate increased from 23% to 24% on 1 January 2013. The rate last rose, from 22% to 23% in July 2010.

The reduced VAT rates of 9% and 13% also increased to 10% and 14%, respectively.

Other countries forced into austerity VAT rate changes include: UK, Romania, Poland, Ireland, Hungary, France, Spain, Greece, Czech Republic.

VAT Calc’s global VAT and GST rates checker provides live indirect tax rates from around the world.


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